- Tether seeks $500B valuation but may delay funding round as investors question pricing and market competition.
- Company could scale raise to $5B as commitments lag, despite strong profits and market leadership.
- Expansion into stablecoins, AI, and commodities continues alongside audit efforts and funding uncertainty.
Tether is making a final push to secure investor commitments for a new funding round targeting a $500 billion valuation, according to The Information. The firm has given potential investors two weeks to respond, while signaling it may delay the raise if participation falls short amid concerns over valuation and competition.
Investor Hesitation Shapes Fundraising Timeline
According to The Information, Tether has been exploring a capital raise since late last year. However, investor concerns around the proposed $500 billion valuation have slowed momentum. The report noted that such a valuation would exceed most U.S. banks, except JPMorgan Chase.
As a result, the company may postpone the round if commitments remain limited. Earlier reports suggested Tether could scale the raise down to about $5 billion, below prior discussions of $15 billion to $20 billion.
CEO Comments and Funding Strategy
Meanwhile, CEO Paolo Ardoino addressed valuation concerns in earlier remarks. Speaking to Reuters, he said higher figures were hypothetical ceilings rather than firm targets. He also stated that investor discussions focused on long-term alignment rather than urgency.
Notably, Ardoino said in September 2025 that Tether was evaluating funding to expand across several business lines. These include stablecoins, artificial intelligence, commodity trading, and communications. However, in February, he said the company does not require external funding despite ongoing discussions.
Expansion Plans and Operational Backdrop
The fundraising effort comes as Tether continues expanding its product lineup. In January, the firm launched a U.S. dollar-backed stablecoin called USAT, designed to align with the GENIUS Act framework.
Additionally, on March 25, Tether announced it had engaged a Big Four accounting firm for its first full audit. The company described the audit as the largest inaugural review in financial markets.
Tether remains the largest stablecoin issuer globally and reported more than $10 billion in net profits last year.
